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Moneycontrol.com India | Accounting Policy > Miscellaneous > Accounting Policy followed by Nylofils - BSE: 526488, NSE: N.A
BSE: 526488|ISIN: INE432N01010|SECTOR: Miscellaneous
Nylofils is not traded in the last 30 days
Nylofils is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.1 Basis of accounting and preparation of financial statements
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on accrual basis under the historical
 cost convention. The accounting policies adopted in the preparation of
 the financial statements are consistent with those followed in the
 previous year.
 1.2 Use of estimates
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognized in the periods in which
 the results are known / materialize.
 1.3 Inventories
 Inventories are valued at the lower of cost (on FIFO basis) and the net
 realizable value after providing for obsolescence and other losses,
 where considered necessary. Cost includes all charges in bringing the
 goods to the point of sale, including control and other levies, transit
 insurance and receiving charges. Work-in-progress and finished goods
 include appropriate proportion of overheads and, where applicable,
 excise duty.
 1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 1.5 Cash flow statement
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payment; The cash flows from operating,
 investing and financing activities of the Company are segregated based
 on the available information.
 1.6 Depreciation and amortization
 Depreciation has been provided on the straight-line method as per the
 rates prescribed in Schedule XIV to the Companies Act, 1956.
 1.7 Revenue recognition
 Sale of goods
 Sales are recognized, net of returns and trade discounts, on transfer
 of significant risks and rewards of ownership to the buyer, which
 generally coincides with the delivery of goods to customers. Sales
 include excise duty but exclude sales tax and value added tax.
 1.8 Other income ,
 Interest income is accounted on accrual basis. Dividend income is
 accounted for when the right to receive it is established.
 1.9 Tangible fixed assets .
 Fixed assets, are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes major
 modifications / betterments / interest / financial charges and other
 expenditure incidental to such acquisition.
 1.10 Investments
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value. Cost of
 investments include acquisition charges such as brokerage, fees and
 1.11 Employee benefits
 As there are no Employees with employment benefits payable the actual
 valuation or disclosures as required under the Accounting Standard -15
 are not applicable.
 1.12 Borrowing costs
 Borrowing costs include interest, amortization of ancillary costs
 incurred and exchange differences arising from foreign currency
 borrowings to the extent they are regarded as an adjustment to the
 interest cost. Costs in connection with the borrowing of funds to the
 extent not directly related to the acquisition of qualifying assets are
 charged to the Statement of Profit and Loss over the tenure of the
 loan. Borrowing costs, allocated to and utilized for qualifying assets,
 pertaining to the period from commencement of activities relating to
 construction / development of the qualifying asset up to the date of
 capitalization of such asset is added to the cost of the assets.
 Capitalization of borrowing costs is suspended and charged to the
 Statement of Profit and Loss during extended periods when active
 development activity on the qualifying assets is interrupted.
 1.17 Segment reporting
 Since the company is dealing in a single product the disclosure
 requirements as per Accounting Standard -17 on Segment Reporting is not
 1.18 Leases
 As there are no Lease arrangements in the company recognition,
 valuation and disclosure requirements -s required under the Accounting
 Standard -19 for leases are not applicable.
 1.19 Earnings per share
 Basic earnings per share is computed by dividing the profit / (loss)
 after tax (including the post-tax effect of extraordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year. Diluted earnings per share is computed by dividing the profit
 / (loss) after tax (including the post-tax effect of extraordinary
 items, if any) as adjusted for dividend, interest and other charges to
 expense or income relating to the dilutive potential equity shares, by
 the weighted average number of equity shares considered for deriving
 basic earnings per share and the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares. Potential equity shares are deemed to be
 dilutive only if their conversion to equity shares would decrease the
 net profit per share from continuing ordinary operations. Potential
 dilutive equity shares are deemed to be converted as at the beginning
 of the period, unless they have been issued at a later date. The
 dilutive potential equity shares are adjusted for the proceeds
 receivable had the shares been actually issued at fair value (i.e.
 average market value of the outstanding shares). Dilutive potential
 equity shares are determined independently for each period presented.
 The number of equity shares and potentially dilutive equity shares are
 adjusted for share splits / reverse share splits and bonus shares, as
 1.20 Taxes on income
 Accounting for Taxes on Income like recognition, measurement and
 disclosure of deferred taxes is not made as there is no reasonable
 certainty of future taxable profits against which such deferred tax
 profits / losses could be set-off / adjusted.
 1.23 Impairment of assets
 The entire plant is considered as a cash generating unit. As the
 recoverable amount of the cash generating unit, is expected to be in
 excess of its carrying amount there is no impairment loss in terms of
 Accounting Standard - 28 on Impairment of Assets.
 1.24 Provisions and contingencies
 A provision is recognized when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation in respect of which a
 reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 Balance Sheet date. These are reviewed at each Balance Sheet date and
 adjusted to reflect the current best estimates. Contingent liabilities
 are disclosed in the Notes.
Source : Dion Global Solutions Limited
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